This article first appeared in The Edge Financial Daily on November 27, 2018

KUALA LUMPUR: Taliworks Corp Bhd’s net profit almost doubled to RM19.68 million in the third quarter ended Sept 30, 2018 (3QFY18) from RM10.01 million a year ago, on higher contributions from the construction and water treatment, supply and distribution divisions.

In a statement yesterday, the infrastructure company said this was further supported by lower cost of operations specifically from lower rehabilitation and maintenance costs incurred in its Langkawi operations.

“Additionally, the group accounted for its share of toll compensation of RM4.1 million received in respect of the non-increase in scheduled toll rate hike on Jan 1, 2016 for the New North Klang Straits Bypass Expressway,” Taliworks added.

This resulted in higher earnings per share of 0.98 sen for 3QFY18 versus 0.5 sen for 3QFY17. Quarterly revenue was also up 32.4% to RM98.36 million from RM74.31 million a year ago.

The group also declared a third interim dividend of 1.2 sen per share amounting to RM24.2 million for the financial year ending Dec 31, 2018 (FY18), payable on Jan 31, 2019.

For the cumulative nine months (9MFY18), the group’s net profit jumped 94.5% to RM44.7 million from RM22.98 million. Revenue rose 17% to RM277.13 million from RM236.94 million in 9MFY17.

“The third-quarter results have somewhat given us a momentum towards year end and we will remain focused and committed to our business strategy by leveraging on Taliworks’ expertise and leadership,” said Taliworks executive director Datuk Ronnie Lim.

“We believe we have the capabilities to maintain a healthy growth that would inevitably ensure clear earnings visibility and sustainable dividends for our shareholders,” he added.

As at Sept 30, 2018, total receivables owed by Syarikat Pengeluar Air Sungai Selangor Sdn Bhd to Taliworks stood at RM701.8 million, of which the total accumulated provision for discounting of said receivables made was RM185.6 million.